RUMOR ALERT: US/UA merger "inevitable"...

[US Oringinal]

MODERATOR NOTE:

The first post of this thread has been redacted at the request of the poster. We will permit discussion of rumored M&A activity here as long as it remains on topic and within the rules of the board. That means do not get into lengthy discussions of labor issues here.......

We will monitor this thread, and edit or close as necessary.

And DO NOT open a duplicate thread in the United Forum--one thread on this subject is more than enough.

Thank you.

 

[JayBrian]

Somewhat relevant article from The Financial Times.

http://www.ft.com/cms/s/3/fde5850c-ac35-11...amp;segid=03058

 

[back2CLT]

Oh, you heard me. I do that everywhere I go, to see if anyone is ever gullible enough to post it on here.

Navy blue pin-stripe suit, orange tie. The give-away that something was amiss was my Arthur Anderson laptop bag.

 

[US Oringinal]

If it weren't for the "rumor mill", what would we talk about here?

Admittedly things heard 2nd or 3rd hand are very suspect, I was just impressed with the specifics that were related to me by the person who supposedly overheard the conversation...and I thought it'd be interesting to hear what people thought...
Does a US/UA merger still make sense?

 

[Smokin Cubans]

With Uncle Doug & Mr. Tilton meeting for the past 3 weeks in various cities (PHX, ORD), you know something is going to happen. Things have been to quite for too long, Is United possible...well anything is possible in this industry. But if United is going down...then let them go down and pick up what you want after it's done (gates, routes, planes,etc). <_<

 

[SegmentKing]

damn. How many RJ's does this represent? :-D

 

[USA320Pilot]

In the summer of 2000 I attended a meeting with former US Airways CEO Stephen Wolf and other individuals. Wolf spoke about the United-US Airways merger that he and former United CEO Jim Goodwin constructed. Wolf told us United's E&FA Department conlcuded that merger would add $1.95 billion per year in additional revenue to the combined business entity.

In my opinion, with a smaller industry, lower fares, and the effects of the Delta-Northwest merger United's estimate of the previous corporate transaction revenue gain would be much lower than the previous estimate $1.95 billion per year and could be closer to $1 billion per year.

Regards,

USA320Pilot

 

[autofixer]

Folks, can you imagine the pile of trash this merger would be? I am amazed at the level of desire that is still out there for mergers...mergers hurt the employees, always. How's the last couple been workin' out for ya? They have been a disaster for me.

 

[ableoneable]

Folks, can you imagine the pile of trash this merger would be? I am amazed at the level of desire that is still out there for mergers...mergers hurt the employees, always. How's the last couple been workin' out for ya? They have been a disaster for me.

Not to mention the carnage that would likely result.

I can't imagine that such a merger would not result in drawdowns and furloughs at both carriers as "synergies" are realized.

 

[Ramp Rogue]

Folks, can you imagine the pile of trash this merger would be? I am amazed at the level of desire that is still out there for mergers...mergers hurt the employees, always. How's the last couple been workin' out for ya? They have been a disaster for me.

If there is any merger with United, we at US are going to be in big trouble seniority wise. Until we go by hire date seniority for everything, United will have the upperhand. And that is going to be a hard row to hoe, because they have the iam in their back pockets!

Rogue

 

[Dog Wonder]

I was out sniffing trees last week and smelled the distinctive aroma of poodle. I followed my nose under some roots and found Scott Kirby's underground lair.

No one was home but the answering machine was blinking. Four messages.

One from Parker asking if he worked there anymore.

One from some one about the inaugural GIG flight.

One from Al Crellin asking for his nine-iron back

And one from Glenn Tilton offering to trade IAD for PHL,CLT and DCA even up. He talked about capitalizing on strengths and buying Scott a Porsche.

I can only surmise Kirby had been out golfing with Crellin and accidentally borrowed his nine-iron.

 

[AirbusAVE]

How long has it been inevitable :down:



If they did merge, It'd be interesting if they keep the US Airways name and logo. It seems more nationalistic and a great logo to reflect a large US Airline. But, United does have a stronger name, I suppose. I would just hope they'd keep the American flag logo.

What the hell is United's logo supposed to represent... ( I don't really care what it represents. Before someone gives me some trivial answer)

 

[Jester]

United is a far bigger mess than US Airways.

I know dozens of United employees and not a single one is pleased with their company. Yes, I know there are plenty of complainers justified and otherwise within our own Happy Family, but nothing like the United crew.

For example, I don't know one US employee who desires the company to just close down tomorrow... I don't know of even one US employee website dedicated solely to bashing their CEO... I don't know of one US employee who deliberately works slow to screw the company... I don't know of one United employee who says their management keeps them informed.

I am certainly not suggesting US management has been the model of corporate effectiveness and efficiency, especially as it pertains to employee relations, but it is nothing as bad as United. The merger these two groups together would be an unmitigated disaster for morale, especially with the integration of seniority.

United's finances are terrible, yes, even worse than US. When a company issues bonds with an effective interest rate around 18%, that's a sure sign of a market which sees a strong possibility of defaulting on those obligations. Hell, even with me working for US can get a home equity loan at 2.5% interest rate!

If these meetings between the Tempe boys and Chicago gang are, in fact true, I just hope one about some major expansion of code shares, instead of some murderous merger.

So Desires Jester.

 

[FlyUs]

It won't be with United.. It doesn't make sense to ax LGA for more slots at DCA. Huge anti-trust issues..

 

[back2CLT]

On a serious note, there really is no way for US Airway to benefit from merging with United (or vice-versa) if both are mortgaged to the level the article posted on the first page implies. Carrying that much debt doesn't allow for a draw-down in service, as the need every last bit of revenue to pay the debt service.

What would make most sense is to quasi-merge, to get the benefits of scale, without the impracticalities of merging these two carriers. Perhaps its been suggested on here before.

I am more inclined to agree that United is on its deathbed, and US should steer clear and reap the benefits of a major carrier disappearing. I was going to suggest picking through the remains at fire-sale prices, but I'm not sure there is anything US would want at any price.....maybe the route authority to Beunos Aries if that is something hard to come by.